MOTORING; Buyer Beware: Wet Cars Coming

By MICHELINE MAYNARD

Published: September 4, 2011

Thousands of people are still cleaning up from Tropical Storm Irene, but the residual impact may be felt by people who didn't see a drop of rain over the weekend.

Damaged cars and trucks from cities and towns affected by the storm are likely to make their way to auto auctions across the country. Once on used-car lots, these vehicles may then be sold at deep discounts relative to the going rates of similar cars, but without any disclosure from sellers about the vehicles' exposure to the storm, echoing a common practice in the aftermath of Hurricane Katrina in 2005.

Jesse Toprak, vice president of industry trends for TrueCar.com, a Web site that tracks car and truck prices, said in a telephone interview that flood-damaged cars could be worth 40 to 70 percent less than comparable vehicles that were not damaged in a storm, and that such cars may look like relative bargains on dealer lots.

An exceptionally priced used car might be a tempting prospect to shoppers who have seen prices for popular models at record levels this year.

''This is a time just to be wary if you are buying a used vehicle,'' Mr. Nerad said. ''Be extra vigilant in the wake of a storm like this.'' He added that even if a buyer lives thousands of miles from the damage, ''don't think you might not run into a storm-damaged car.''

Flood damage does not render a car a total loss. Many vehicles suffer only minimal damage, and even those that have been submerged might be drivable if properly cleaned and overhauled. But many consumers do not know that such vehicles, even when disclosed by the seller, require more scrutiny than usual.

Consumer Reports magazine recommends that shoppers contact their state's motor vehicles department to learn if salvaged cars must be identified as such by the seller. Potential buyers also should ask their insurance company if coverage is available for cars that have suffered flood damage, Mr. Toprak said.

For a fee, services like Carfax offer information about a vehicle's previous ownership history. And, using the vehicle identification number, shoppers can obtain information from the National Insurance Crime Bureau. After Hurricane Katrina, the bureau created a tool called VINCheck, which allows shoppers to check the status of vehicles and see if they have been salvaged or stolen. Consumers can check up to five vehicles per day.

The risk of buying a flooded car should add an additional layer of scrutiny to what always should be a rigorous process, Mr. Toprak said. And if a potential buyer is at all nervous, ''the best thing to do is simply walk away from it.''

If a buyer is willing to proceed, Mr. Nerad and Mr. Toprak suggest relying on the senses.

Check every nook and cranny of any used car for evidence of soot, grime and water damage. Also check to see if the car looks too clean compared to other vehicles -- for example, the engine compartment is spotless when it shouldn't be for a car of its price and vintage.

''If you look under the hood and it's so spotlessly cleaned that it looks steam cleaned or pressure washed, that might be a hint that something is untoward,'' Mr. Nerad said.

After a visual inspection, the car should be taken to a mechanic, Mr. Toprak said. ''I would never tell anybody to simply guess. You have to get professional help,'' he said. On a garage lift, the car can be inspected more thoroughly. A mechanic can also run diagnostics on the electrical system, where the biggest problems occur on flooded cars.

A car that's been waterlogged has an unmistakably musty odor akin to a wet basement, and the odor is even stronger if sewage was allowed to leak inside. Even if the car had been cleaned, the odor cannot be masked completely, Mr. Nerad said. ''If you smell a lot of deodorant, that might be a sign that they're trying to hide something,'' Mr. Toprak added.

There is no substitute for starting the car, driving it and listening to the engine. An ear should be attuned to brakes for any sounds of squeaking or grinding.

A buyer should put hands over everything, checking for dampness as well as soot or grit. Presuming the buyer has done some comparative shopping, the firmness of the seats should be compared to those in the other cars tested.

This is a more complete version of the story than the one that appeared in print.

PHOTO: FLOOD ZONE: A Hyundai and a BMW took an unplanned swim Sunday in Washingtonville, N.Y. (PHOTOGRAPH BY PAUL KAZDAN/ASSOCIATED PRESS)